Aaron's cuts its fiscal 4Q, 2013 forecasts

by AP

alt

Chief Executive Ronald W. Allen said revenue and customer growth were lower than its prior expectations.

ATLANTA (AP) — Aaron's is lowering its fiscal fourth-quarter and 2013 outlooks partly because of tough economic conditions facing its shoppers.

The retailer's stock fell more than 7 percent in morning trading Monday.

Aaron sells and leases furniture, consumer electronics, home appliances and accessories. Chairman and President Ronald Allen said in a statement that the company's low- to middle-income shoppers are still dealing with difficult economic conditions. Product shipments to franchisees were also less in the fourth quarter than the prior-year period, he added. Sales at company-run stores open at least a year slipped.

The company now foresees quarterly earnings of 27 cents to 31 cents per share on revenue of about $555 million. Its previous outlook was for earnings between 38 cents and 42 cents per share on revenue of $575 million.

The company's revenue forecasts exclude revenue of franchisees.

Analysts surveyed by FactSet expect fourth-quarter earnings of 40 cents per share on revenue of $575.2 million.

For 2013, Aaron's now predicts adjusted earnings of $1.84 to $1.88 per share on revenue of approximately $2.24 billion. Previously the company forecast adjusted earnings of $1.95 to $1.99 per share on revenue of $2.26 billion.

Wall Street is looking for earnings of $1.97 per share on revenue of $2.26 billion.

CEO Allen said business trends aren't expected to dramatically improve near term.

Going forward, Aaron's anticipates fiscal 2014 earnings of $1.80 to $2 per share. Revenue is expected to be about $2.3 billion.

Analysts predict earnings of $2.17 per share on revenue of $2.37 billion.

Shares of Aaron's Inc. declined $2.15, or 7.4 percent, to $26.80 in morning trading.

The company expects to report its final fourth-quarter and full-year financial results on Feb. 7.



More Local

First Surgeries on Hartsell and Latimer Successful

Both Bradley Hartsell’s and Hannah Latimer’s surgeries have reportedly gone well so far, according to Hartsell’s aunt and ... Read More


Georgia gas prices up 30 cents in a month

Gas prices in Georgia have skyrocketed in the past month, with the state average price climbing 30 cents. But the national average is up on ... Read More


'Term Life' wraps up in Grantville

Film crews working on the movie “Term Life” wrapped up shooting in downtown Grantville on Thursday. “We’ve given the ... Read More


MADD honors Newnan officer

A Newnan Police Department officer was honored by Mothers Against Drunk Driving this week to recognize multiple drunk driving arrests he mad ... Read More


Public safety trailer ready for work

When the weather gets too hot or too cold, the Newnan Fire Department and Newnan Police Department have just what it takes to help firefight ... Read More

Newnan celebrates Georgia Cities Week

In celebration of Georgia Cities Week, the city of Newnan presented a 'People, Place, Purpose' open house at the Newnan Carnegie Library dow ... Read More